It was an epic run, but something needed to cool off for shares of Universal Display Corporation (NASDAQ: OLED). After more than doubling in value and hitting new all-time highs in 2019 on rallying demand for OLED display manufacturing setup and materials purchasing, the stock has since pulled back over 20%.
Some of the volatility is just the natural order of things when it comes to owning a high-growth stock, but where once the U.S.-China trade was the cause of worry, now it's coronavirus. Universal Display had a strong showing in the final quarter of 2019, but guidance for the new year was weaker than anticipated because of the health scare.
In the fourth quarter of 2019, revenue grew 45% year over year to $101.7 million (or 17% higher when adjusting for accounting changes that affect revenue recognition). Results were driven by the sale of materials (60% of total sales) used to make OLED screens. Earnings per share increased 40%, and the soaring bottom line led to a 50% hike in the dividend to $0.15 per quarter (though it's only good for a yield of 0.3% as of this writing).